AAPICO HITECH PLC [AH]

AAPICO HITECH PLC [AH]3Q 2020 Quarterly Results Presentation

AAPICO HITECH PLCProvided by Investor Relations Department

DATE OF ISSUANCE: 03/12/20

DISCLAIMER

The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO.

Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements.

None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advise.

[email protected] | +66-(0)-2613-1504

AAPICO HITECH PLCProvided by Investor Relations DepartmentDISCLAIMER 2

AGENDA

AAPICO HITECH PLCProvided by Investor Relations DepartmentAGENDA

COMPANY INFORMATION

AUTOMOTIVE INDUSTRY UPDATES

FINANCIAL PERFORMANCE

STRATEGY & DIRECTION

3

COMPANY INFORMATION

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 1: COMPANY INFORMATION 4

AAPICO AT A GLANCEAAPICO Hitech Public Company Limited


SECTION 1: COMPANY INFORMATIONAAPICO AT A GLANCE

5

Founded in

Listed in the Stock Exchange of Thailand (SET)

Shares mainly owns by Mr.Yeap Swee Chuan and Family (as of 17 Mar 20)

Business Units

the OEM Automotive Parts

Manufacturing

Car Dealership IoT Connectivity & Mobility AH Share Price as

of 1 Dec 20

Market Capitalization as

of 1 Dec 20Rewarded

From National CG Committee

Listed in

Thailand Sustainability

Investment 2020

Subsidiaries and Associate Companies

across the World

Companies in Thailand

Companies in Overseas

Ranked

From Tris Credit Rating


SECTION 1: COMPANY INFORMATIONOUR VISION AND CORE VALUE

6

OUR VISION AND CORE VALUEBecoming Lean, Green, Happy and Digital World Class Organization with 4 Fundamental Values

MANUFACTURINGRESEARCH & DEVELOPMENTCAR RETAILING

TO BECOME ALEAN, GREEN, HAPPY, DIGITALWORLD-CLASS CORPORATION

• S : Safety• Q : Quality• C : Cost• D : Delivery• E : Engineering• M : Management

(Focus Digital)

• Teamwork• Look at problems as

opportunities• Love Family,

Company and Country

• Loyalty and Honesty• Mutual Respect

• Profitability• Reasonable Dividend

• Corporate Social Responsibility

AAPICO’S KEY FUNDAMENTAL VALUES

OUR VISION

CUSTOMERS EMPLOYEES SHAREHOLDERS PUBLIC

OEM Auto Parts

Manufacturing Business

Car Dealerships

IoT Connectivity

& Mobility


SECTION 1: COMPANY INFORMATIONCORE PILLAR OF AAPICO BUSINESS

7

CORE PILLAR OF AAPICO BUSINESSComposing of Three Core Pillars with OEM Auto Part as a Main Business

CORE PILLARS - PRODUCTSComposing of 3 Core Pillars with OEM Auto Parts as a Main Business


SECTION 1: COMPANY INFORMATIONCORE PILLARS - PRODUCTS

8

Note:1 Sales and Services Income for 9 Month Period Ended 30 September 2020

Thailand, Portugal and China Thailand and Malaysia Thailand

• METAL FORMING• CHASSIS &

STRUCTURAL

• PLASTICS & PARTS

• FUEL TANK & WASHER SYSTEM

• FORGING, MACHINING & CASTING

71% Sales and Services IncomeContribution1

• MALAYSIA

(DISTRIBUTION & RETAIL)

• THAILAND

29% Sales and Services IncomeContribution1 <1% Sales and Services

IncomeContribution1

CAR DEALERSHIPS BUSINESS

IOT CONNECTIVITY & MOBILITY BUSINESS

OEM AUTO PARTS MANUFACTURING BUSINESS

• JIGS & DIES


SECTION 1: COMPANY INFORMATIONAAPICO’S FOOTPRINT

9

Hitech Industrial Estate• Metal Forming

• IOT Connectivity & Mobility Business

Ford Dealership

Mitsubishi Dealership• Navanakorn• Pakkret• Pathumthani

• Samutprakarn• Ramindra

Bangpli Industrial Estate

• Plastics & Parts

Amata City Industrial Estate Chonburi

• Metal Forming• Chassis & Structural• Forging & Machining

Amata City Industrial Estate Rayong• Metal Forming• Fuel Tanks & Washer

System

• Jigs & Dies

SAMUTPRAKARN

AYUTTHAYA

CHONBURI

RAYONG

AAPICO’S FOOTPRINTThailand

BANGKOK METROPOLITAN REGION


SECTION 1: COMPANY INFORMATIONAAPICO’S FOOTPRINT

10

AAPICO Offices

Car dealers:

Honda Proton

MALAYSIA

Production: Iron casting

PORTUGAL: Maia

Production: Steel and Copper Forging

CHINA: Kunshan

Thailand

India: Coimbatore/Erode

China:Kunshan & Rushan

Japan

United Kingdom (UK):London

Portugal: Porto

United States of America (USA):New York Detroit

AAPICO Companies

Singapore

Malaysia:Kualalumpur/Pahang

AAPICO’S FOOTPRINTThailand and Overseas

Thailand

Portugal

Malaysia

China

9M 2020Sales Breakdown

by Country

MAJOR OEM CUSTOMERS ISUZU remained as our Main Customer with 38% Sales Contribution in 9M 2020


SECTION 1: COMPANY INFORMATIONMAJOR OEM CUSTOMERS

11

Note:1 Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.

9M 2020 VS 9M 2019 OEM Customers Contribution

30%

38% 9%

10%

7%

5%

5%

3%

5%

3%

4%

4%

3%

18%

3%

2%

2%

25%

24%

0% 20% 40% 60% 80% 100%

9M19

9M20

FORD

DANA

CONTINENTALISUZU NISSAN

AAT1

VINFAST OTHERS

TOYOTAAAM

ISUZU AAT1 NISSAN

DANA

FORD

VINFASTAAM TOYOTA

OTHERS

OEM TIER - 1

GKN AUTOMOTIVE


SECTION 1: COMPANY INFORMATIONOUR JOINT VENTURES AND PARTNERS

12

Joint Venture Companies

Technical Partner

OUR JOINT VENTURES AND PARTNERSCore Pillar of AAPICO Business

AUTOMOTIVE INDUSTRY UPDATES

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 2: AUTOMOTIVE INDUSTRY UPDATES 13

THAILAND CAR PRODUCTION VOLUMEMarket Overview


SECTION 2: MARKET OVERVIEWTHAILAND CAR PRODUCTION VOLUME

14

Total Car Production by Quarter

328 294 296 259 273 96

216

223 202 198 172 172

54

134

551504 506

441 454

152

357

0

200

400

600

800

1000

1200

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Pick-Up/PPV Passenger Others‘000 Units

919 585

623

361

1,573

963

9M 2019 9M 2020

-38.8% yoy

-29.6% yoy

Source: The Federation of Thai Industry (Automotive Industry)

YTD Car Production(Jan-Sep 20)

THAILAND EXPORT VOLUMEMarket Overview


SECTION 2: MARKET OVERVIEWTHAILAND EXPORT VOLUME

15

300 260 261

233 250

100

171

-

100

200

300

400

500

600

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Export Volume‘000 Units

821 521

9M 2019 9M 2020

-36.5% yoy


-34.5% yoy

YTD Export Volumes(Jan-Sep 20)Export Volumes by Quarter

133 126 111 122 97 69 108

103 10499 93

78

41

69

28 3128 31

25

18

29

264 261 238 246

200

128

206

0

75

150

225

300

375

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

1-Ton Pick-Up/PPV Passenger cars Others

DOMESTIC CAR SALES VOLUME Market Overview


SECTION 2: MARKET OVERVIEWDOMESTIC CAR SALES VOLUME

16

‘000 Units

370 274

306

189

86

72

762

535

9M 2019 9M 2020

-29.8% yoy

YTD Domestic Car Sales(Jan-Sep 20)Domestic Car Sales by Quarter


-13.4% yoy

5,443 4,049

8,371

5,613

2,156

1,627

15,970

11,289

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

9M 2019 9M 2020

1,886 1,909 1,648 1,846 1,693 766

1,590

3,013 2,939 2,419 2,591 2,379

1,131

2,103

784 767 605

729 630

346

651

5,683 5,615

4,672 5,166

4,702

2,243

4,344

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Pick-Up/PPV Passenger Others

EUROPE CAR PRODUCTION VOLUMEMarket Overview


SECTION 1: MARKET OVERVIEWEUROPE CAR PRODUCTION VOLUME

17

Total Car Production by Quarter

-29.3% yoy

Source: IHS Markit – October 2020 (Automotive Industry)

YTD Car Production(Jan-Sep 20)

-7.0% yoy

‘000 Units

14,062

8,562

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

9M 2019 9M 2020

4,805 4,987

4,270 4,304

3,054

2,048

3,460

-

1,000

2,000

3,000

4,000

5,000

6,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

European Car Sales

EUROPE CAR SALES VOLUME Market Overview


SECTION 2: MARKET OVERVIEWEUROPE CAR SALES VOLUME

18

YTD European Car Sales(Jan-Sep 20)European Car Sales by Quarter

-39.1% yoy-19.0%

yoy

Source: IHS Markit – October 2020 (Automotive Industry)

‘000 Units

No. Brand 9M20 9M19 %

1 Toyota 156,807 248,673 -36.9%

2 Isuzu 123,526 125,959 -1.9%

3 Honda 65,047 97,695 -33.4%

4 Mitsubishi 40,522 67,445 -39.9%

5 Nissan 33,047 49,706 -33.5%

6 Mazda 26,072 45,885 -43.2%

7 MG 18,699 18,689 0.1%

8 Ford 19,332 38,331 -49.6%

9 Suzuki 17,451 18,404 -5.2%

10 Hino 6,929 9,048 -23.4%

11 Others 27,297 42,012 -35.0%

Total 534,729 761,847 -29.8%

THAILAND TOTAL INDUSTRY VOLUME (JAN-SEP) Total Volume Decreased 29.8% YoY Compared to 9M19


SECTION 2: MARKET OVERVIEWTHAILAND TOTAL INDUSTRY VOLUME (JAN-JUN)

19

Source: Toyota

MALAYSIA TOTAL INDUSTRY VOLUME (JAN-SEP) Total Volume Decreased 22.8% YoY Compared to 9M19


SECTION 2: MARKET OVERVIEWMALAYSIA TOTAL INDUSTRY VOLUME (JAN-JUN)

20

Source: MAA

No. Brand 9M20 9M19 %

1 Perodua 145,012 178,154 -18.6%

2 Proton 73,547 69,920 5.2%

3 Honda 34,655 65,123 -46.8%

4 Toyota 36,834 47,608 -22.6%

5 Nissan 9,167 15,676 -41.5%

6 Others 42,274 65,909 -35.9%

Total 341,489 442,390 -22.8%

FINANCIAL PERFORMANCE

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 3: FINANCIAL PERFORMANCE 21

FINANCIAL HIGHLIGHTSAH Group Consolidated Statement of Financial Position


SECTION 3: FINANCIAL PERFORMANCEFINANCIAL HIGHLIGHTS

22

3Q 2020 Financial Summary

▪ Revenue increased by 6.39% year-on-year. Sale and service income increased 8.43%, with 6.62% and 12.94% increase from automotive parts businesses and dealership businesses respectively.

▪ Cost of sales and services increased in accordance with higher sales. Gross profit margin improved from 8.87% in Q3 2019 to 10.01% in Q3 2020.

▪ Selling and administrative expenses were Baht 66.34 million higher than last year, due to consolidation of AAPICO Maia (Portugal) since Q4 2019.

▪ Gain on foreign currency exchange rate was at Baht 52.11 million, compared to a loss of Baht 21.55 million in Q3 2019, caused by exchange rate fluctuation.

▪ Net profit attributable to equity holders was Baht 301.78 million, compared to net profit of Baht 203.80 million in Q3 2019. Net profit margin (%) has improved from 4.43% in Q3 2019 to 6.16% in Q3 2020 due to the following reasons.

1. Better cost control, productivity improvement and volume increase of new car models2. Better performance from AAPICO Maia (Portugal). 3. Gain on foreign currency exchange rate 4. Profit sharing from associates and joint ventures amount of Baht 49.07 million

(Unit: THB million) Q3 2019 Q3 2020

Total Revenue 4,603 4,897

Sales and service income 4,318 4,682 Gain on changes in Interests in Investments in Associate and Joint Venture

151 -

Gains on exchange rate - 52

Interest Income - 9

Other Income 134 153

Cost of sales and services 3,935 4,214

Gross Profit 383 468

Gross Profit (%) 8.87% 10.01%

SG&A expenses 233 300

Loss on exchange rate 22 -

EBIT before share of profit from investment in Asso and JV 413 384

Share of profit from investment in Asso and JV (92) 49

EBIT 322 433

Finance cost (72) (93)

Income Tax Expenses (44) (29)

Net Profit to Equity Holders 204 302

Net Profit Margin (%) 4.43% 6.16%

EBITDA 564 699

4,479 4,759 4,603 5,464 5,217

2,129

4,897

-

2,000

4,000

6,000

8,000

10,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Sale Interest Income one-time gains Other Income

AH GROUP : REVENUEAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : REVENUE

23

THB million THB million

YTD Revenue (Jan-Sep 20)

Auto Parts71%

Car Dealerships29%

9M 2020 Sales and Services

IncomeContribution

13,840 12,106

9M 2019 9M 2020

-12.5% yoy

▪ Q3 2020 Revenue increased by 6.39% year-on-year. Sale and service income increased 8.43%, with 6.62% and 12.94% increase from automotive parts businesses and dealership businesses respectively. An incremental growth is largely from the consolidation of AAPICO Maia (Portugal) in Automotive Parts and from the opening of 2 new Mitsubishi Showrooms in Car Dealership Business.

▪ For the period of January to September, Revenue decreased by 12.53% year-on-year. Sale and service income decreased 12.50%, with 10.01% and 17.98% decrease in automotive parts businesses and dealership businesses respectively. This decrease was mainly caused by the Covid-19 Pandemic.

Note: The company acquired 100% shares of AAPICO MAIA (Portugal) since Q4 2019. The performance in Q1-Q3 2019 didn’t consolidated Portugal entity as company’s subsidiary, The company took profit (loss) sharing through SGAH.

Revenue by Quarter

6.4% yoy

Note: Included net gain on exchange rate in 9M 2020 of Baht 112.86 million.

AH GROUP : GROSS PROFITAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : GROSS PROFIT

24


YTD Gross Profit(Jan-Sep 20)Gross Profit by Quarter

375 356 383

571 430

-262

468

8.9% 7.7% 8.9%10.9% 8.9%

-13.2%

10.0%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

(400)

(200)

-

200

400

600

800

22.2% yoy

1,114

637 8.5%

5.5%

9M 2019 9M 2020

-42.8% yoy

▪ Q3 2020 Gross Profit improved from 8.87% in Q3 2019 to 10.01% in Q3 2020 due to increased sales volume of new model, internal cost reduction activities and our effort to accelerate productivity improvement due to Covid-19.

▪ For the period of January to September, Gross Profit in terms of amount decreased to Baht 637 million and Gross Profit Margin was lowered to 5.5%. This decrease was mainly caused by the Covid-19 Pandemic which adversely affected both automotive parts and dealership businesses in Q2 2020

Note: The company acquired 100% shares of AAPICO MAIA (Portugal) and 2 subsidiaries since Q4 2019. The performance in Q1-Q3 2019 didn’t consolidated Portugal entity as company’s subsidiary. The company took profit (loss) sharing through SGAH.

AH GROUP : AUTO PART SALESAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : AUTO PART SALES

25


YTD Auto Parts Sales(Jan-Sep 20)Auto Parts Sales by Quarter

2,995 3,128 2,9913,794 3,744

1,268

9.2%

5.1%8.5%

10.1% 10.2%

-38.7%

11.5%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Thailand Portugal China EBIT%6.6% yoy

7.6% 3.1%

9M 2019 9M 2020

-10.0% yoy

▪ Q3 2020 sales increased by 6.6% YOY mainly from the consolidation of AAPICO Maia (Portugal). For the period of January to September, sales decreased by 10.0% YOY, caused by Covid-19 Pandemic which affected the demand of the cars both locally and globally. In addition, we didn’t have tooling income from overseas customers, recorded this quarter.

Note: The company acquired 100% shares of AAPICO MAIA (Portugal) and 2 subsidiaries since Q4 2019. The performance in Q1-Q3 2019 didn’t consolidated Portugal entity as company’s subsidiary. The company took profit (loss) sharing through SGAH.

3,189

9,114

8,202

FORD

DANA

CONTINENTAL

ISUZU

NISSAN

AAT

VINFAST

OTHERS

TOYOTA

AAM

9M 2020OEM

Customers Breakdown

AH GROUP : CAR DEALERSHIPS SALESAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : CAR DEALERSHIPS

26

YTD Car Dealership Sales (Jan-Sep 20)Car Dealership Sales by Quarter

1,2331,484 1,321 1,440

1,106714

1,492

1.5%0.3%

0.8% 0.2% 0.9%0.4%

1.9%

-

1,000

2,000

3,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Thailand Malaysia EBIT%

Ford19%

Mitsubishi31%

Honda41%

Proton9%

9M2020

THB million

4,038 3,312

0.8% 1.2%

9M 2019 9M 2020

-18.0% yoy

▪ Q3 2020 Sales increased by 12.9% year onyear, For the period of January to September,sales decreased by 18.0% YOY, from lower carsales in Malaysia which was affected by Covid-19 Pandemic.

12.9% yoy

Ford11%

Mitsubishi24%

Honda61%

Proton4%

9M2019

1,3831,055

9M 2019 9M 2020

AH GROUP : EBIT & EBITDA


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : EBIT & EBITDA

27

YTD EBIT&EBITDA(Jan-Sep 20)EBIT and EBITDA by quarter

517

301

564

-447

643

-287

699

(800)

(600)

(400)

(200)

-

200

400

600

800

1,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

EBIT Depreciation

8.2%3.4%

9.0%

-12.9%

7.8%

-23.5%

7.8%

11.5% 6.3%12.3%

-8.2%

12.3%

-13.5%

14.3%

-30%

-15%

0%

15%

30%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Unit: as % of revenue EBIT% EBITDA%

6.8% 2.4%

9.9% 8.7%

9M 2019 9M 2020

EBIT% EBITDA%

-23.7% yoy

THB million 23.9% yoy

AH GROUP : NET PROFIT


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : NET PROFIT

28

YTD Net Profit(Jan-Sep 20)Net Profit by quarter

THB million

217 140 204

-742

330

-631

302

(1,100)

(800)

(500)

(200)

100

400

700

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

AH and Subsidiaries Associates and JV

4.8% 2.9% 4.4%

-13.6%

6.1%

-29.6%

6.2%

-30%

-20%

-10%

0%

10%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Unit: as % of revenue

Net Profit %

9M 2019 9M 2020

561

1

4.1% 0.0%

9M 2019 9M 2020

Net Profit %

-99.8% yoy

48.0% yoy

14.4% 12.4% 11.0%

-2.4% -1.0%-11.5%

-9.7%

-50%-40%-30%-20%-10%

0%10%20%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

ROE (In the Quarter) ROE (Seasonally adjusted)

6.8% 5.7% 5.0%

-0.9% -0.3%

-4.2%

-3.7%

-20%-15%-10%-5%0%5%

10%15%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

ROA (In the Quarter) ROA (Seasonally adjusted)

6.55.4 4.6

1.2 1.5-0.9 -0.6

-8.0

-4.0

0.0

4.0

8.0

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

ICR (In the Quarter) ICR (Seasonally adjusted)

2.7 3.0 2.9

7.8 7.5

17.513.3

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Debt/EBITDA (In the Quarter)Debt/EBITDA (Seasonally adjusted)

AH GROUP : FINANCIAL INDICATORS


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : FINANCIAL INDICATORS

29

Return on Equity (ROE)

Return on Asset (ROA)

Interest Coverage Ratio (ICR)

Debt to EBITDA


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : NET GEARING

30

Debt Ratios

THB 9.8 bnInterest-Bearing Debt

in September 2020.

Interest-Bearing Debt

LT Loan

CPD

CPLTDST Loan

LT Bond

▪ Net interest-bearing debt to equity ratio as of September 2020 was 1.28x, compared to 0.77x as of September 2019.

▪ Total liabilities net cash (Net debt) to equity ratio as end of September 2020 was 1.81x.

0.400.69 0.800.80 0.83 0.77

1.11 1.201.40

1.28

0.740.99

1.18 1.21 1.22 1.15

1.77 1.88 1.82 1.81

0.00.20.40.60.81.01.21.41.61.82.0

0.0

2.0

4.0

6.0

8.0

10.0

2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Debts Equity D/E (L-C)/E

AH GROUP : NET GEARINGAH Group Consolidated Income Statement

THB bn Times

STRATEGIES AND DIRECTIONS

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 4: STRATEGIES AND DIRECTIONS 31

THAILAND AUTOMOTIVE OUTLOOK IN 2020Total Cars Production Volume Estimation of 1.4mn in 2020


SECTION 4: STRATEGIES AND DIRECTIONSTHAILAND AUTOMOTIVE OUTLOOK IN 2020 32

Overall Outlook in 2020

Thailand automotive industry in 2020 is anticipated car production volume to stand at 1.4 million cars.


10-15%

0.4

6

0.5

8

0.7

5

0.9

3 1.13

1.19

1.29

1.39

1.00

1.65

1.46

2.45

2.46

1.88

1.91

1.94

1.99 2.17

2.0

1

1.40

1.5-1

.6

-

0.5

1.0

1.5

2.0

2.5

3.0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

E

2021

E

Production

Forecast

Domestic

Export Global Financial

Crisis Flood

First car campaign

Covid-19

TYPICAL CYCLE PLAN FOR PAST, PRESENT AND FUTURE VOLUMES FOR ONE COMPONENT FOR AN OEM BRAND


SECTION 4: STRATEGIES AND DIRECTIONSSAMPLE OF AUTOMOTIVE PARTS SALES ORDERS FOR CURRENT AND NEW MODELS 33

Stable Sales Volume with Steady Growth

0

100

200

300

400

Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23

First car

campaignUnit: in thousand

Previous model Current model New model

Covid-19

Flood

Global Financial

Crisis

In OEM planning the contractual volume for the life of the model is provided by the OEM and part makers need to plan to support the highest monthly volume and machines should last the lifetime of that model. Hence tooling investments have no risk.

THAILAND AUTOMOTIVE OUTLOOK IN 2020Continued orders going forward


SECTION 4: STRATEGIES AND DIRECTIONSTHAILAND AUTOMOTIVE OUTLOOK IN 2020

34

ISUZU D-Max Mu-X

NissanNavaraTerra

TOYOTA Hilux Revo Fortuner

FORDRangerRapterEverest

MitsubishiTritonPajero Sport

Honda City

HRV BRV

ToyotaHRV Camry

Altis Vios Yaris

MazdaMazda 2

BT-50 PRO

NissanAlmera

Sylphy Note March

FORDFiestaFocus

Eco Sport

Confirmed orders – 5 years for cars and 10-12 years for pick-up truck

GLOBAL BUSINESS OPPORTUNITIES2020F Global Production Volume is expected to be around 71 million units1


SECTION 4: STRATEGIES AND DIRECTIONSGLOBAL BUSINESS OPPORTUNITIES

35

Thailand #11

France #10

Spain #9

Brazil #8

S.Korea #7

Mexico #6

India #5

Germany #4

Japan #3

USA #2

China #1

Unit : Millions2019 2018

2019 Global Production Volumewas 92 million units

Major OEM Brands in Thailand

Thailand Volume 2 Million

Note: 1LMC Automotive, https://www.counterpointresearch.com/weekly-updates-covid-19-

impact-global-automotive-industry/ and OICA

Top 10 Motor Vehicle Production Country in 2019

THAILAND

AFRICA

CHINA

INDIA

THE REST OF ASIA

JAPAN

USA

EUROPE

https://www.counterpointresearch.com/weekly-updates-covid-19-impact-global-automotive-industry/


SECTION 4: STRATEGIES AND DIRECTIONSBUSINESS STRATEGY

36

BUSINESS STRATEGYUSA and Japan are Investment Opportunities for our Business Expansion

CHINAINDIA

EUROPE

USA JAPAN

THAILANDMALAYSIA

• 40% JV partnered with Sojitz Group in Vroom for distributing and retailing of KTM, Husqvarna and Bajaj brand

• Appropriated 50.01% shares of SGAH (AH hold 100% in SGAH)

• Acquired AAPICO Maia, S.A. (Portugal) and two subsidiaries (AH directly hold 100%)

• Established two Mitsubishi Car Dealership namely Able Motors Pakkret and Able Motors Pathumthani

AAPICO KEY MILESTONESTaking Steps Toward Globalization


SECTION 4: STRATEGIES AND DIRECTIONSAAPICO KEY MILESTONES

37

• Listed on SET.

• Acquired a chassis frame factory from Dana Corporation.

• Established the first Mitsubishi Car Dealership;Able Motor.

• Expanded to China.

• JV partnered with Minth Corporation.

• JV partnered with Takagi Seiko.

• Completed the 3S showroom for Honda dealers in Malaysia.

• Commenced the operation in Kunshan (China).

• Established JV with;❖ Lemtech

(Taiwan)❖ Edscha

(Germany)❖ Sumino

(Japan)❖ Sodecia

(Portugal)

• Explored opportunity in the start-up business.

• Established AAPICO Training Center.

• Issued bond with a BBB+ from TRIS Rating.

• Achieved 4-star CG rating.

• Partnered with Sakthi Group and invested 25.10% or US$100 million in Sakthi Global Auto Holding Limited (SGAH).

• Increased holding in SGAH from 25.10% to 49.99% with total investment of US$65 million

• Established Proton Dealership in Malaysia (49%)

• Established AAPICO Hyojin Autotech, a 55% subsidiary, operates the automotive assembly jigs design, manufacturing and robotic integration

• Partnered with Sojitz Corp.

• Established JV with Mitsuike Corp.

• Acquired forging business from KPN.

Listing for growth Growth Phase Toward Globalization

KEY SUMMARY


SECTION 4: STRATEGIES AND DIRECTIONSKEY SUMMARY

38

4. We are on track to meet the revised sales forecast, and we expect to see continued improvement in operating performance for the rest of the year.

2. Cost and inventory control and productivity improvements as well as sale increase are our key success for significant increase in profitability.

1. Turned Profitable in Q3 2020 for both 3 months and 9 months performance on cumulative basis, after suffering from a difficult period in Q2 2020 due to Covid-19 pandemic.

3. Customer orders are now returning and our factories are now working on two shifts.

KEY SUMMARY


SECTION 4: STRATEGIES AND DIRECTIONSKEY SUMMARY

39

6. AAPICO is lucky to receive windfall orders in Thailand of Baht 200 million & overseas of Baht 100 million.

5. Covid-19 impacted some suppliers in Thailand & Overseas causing disruption.

7. AAPICO received new product orders of about Baht 1,500 million /year starting early 2022

Documents

AAPICO HITECH PLC [AH]